Too many Taycans for sale??

[whitex]

Reading this thread, I lol at the folks who think that their car shouldn’t depreciate and forgot that in normal times, dealer offers are wholesale prices. For all you young’uns, or people who just have short memories, the minute you drive a new car off the lot, you should assume that:

1. Your TT&L payment is gone,

2. Your new car is worth 10-15 percent less than you paid for it (excluding TT&L, which is gone) assuming you paid market price for it, and

3. It’s worth even less if sold back to a dealer, who will pay you wholesale and then resell it at 10-15 percent below sticker.

Isn’t it amazing how quickly (couple of years) people got used to the crazy pandemic residuals, and assume that it will be the new normal?

For those who feel outraged, perhaps it would be relevant to read “Who moved my cheese” by Spencer Johnson.

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[whitex]

Jeez, I wish I’d never commented on this thread. I’m 55 years old, been into cars since I was a kid. I’ve owned high spec, top brand cars for years but never experienced depreciation like what I was quoted on the Taycan 4S that I’ve only owned for two months. So, where ever you are and what ever your thoughts are, it makes no difference. I was merely stating the fact that the numbers in my situation are not good and it’s worrying. I’m not after explanations, reasons or sympathy. Dealers are taking the piss!

Seriously, when did you buy a $100K+ car and sold it 2 months later to a dealer with less than 20% loss out of pocket (so including all taxes, fees, etc).

Your own claim is that the dealer profit is 1/6th of the price, so there is an instant 17% loss when you drive off. On trade-in dealer will add 1% for each month they expect for the car to sit on then lot. Taxes and registration are a total loss unless you can reclaim some of them as tax credit towards another car purchase. Something tells me $20K less than what you paid was actually a good offer.

 

[Archimedes]

Jeez, I wish I’d never commented on this thread. I’m 55 years old, been into cars since I was a kid. I’ve owned high spec, top brand cars for years but never experienced depreciation like what I was quoted on the Taycan 4S that I’ve only owned for two months. So, where ever you are and what ever your thoughts are, it makes no difference. I was merely stating the fact that the numbers in my situation are not good and it’s worrying. I’m not after explanations, reasons or sympathy. Dealers are taking the piss!

Nonsense. Unless you’re talking about limited supply, very high end cars, this is total nonsense. Pre pandemic, the only cars that ever resisted depreciation were a small group of high end, limited production cars. The Taycan isn’t that. I paid $143k for my ‘22 4S 14 months ago. It’s probably worth $100-$110k right now. That’s normal depreciation for a new car.

 

[Hanny]

In the UK, there reports just surfacing that highlight that the second hand EV values have dropped. Even worse in Tesla land as Tesla dropped their new prices which has/will hurt used values for any customers who bought new in the last year. From what I have noticed over the last 2 years is that both new and used cars have ridden a freak wave of inflated values and long waiting times, the demand and supply has been upside down.

The market seems to be settling down but unfortunately some will find, as in the thread‘s originator’s case, that most cars will probably loose a lot more than expected as both supply with used EV’s are more available, and any used vehicles purchased before Feb 23 unfortunately will have a big difference between original purchase to current used value. This used to be common when the World was in its normal daily life before the pandemic- only the rare/limited cars kept or increased their value. Unfortunately a Taycan is just a premium luxury EV, not a rare limited production car.

it would appear that Mac_Gaz situation is due to bad timing of purchase when resale was higher a couple of months ago couple with change of supply today - hence the big drop in value.

 

[Hanny]

With out intentionally being rude, but some post replies in this thread did cause an eyebrow to lift in that if you are looking to be careful of expenditure and investments, I would avoid buying cars as the value and return normally only goes down.

Bigger the price, bigger the drop……in most cases.

 

[Mac_Gaz]

Nonsense. Unless you’re talking about limited supply, very high end cars, this is total nonsense. Pre pandemic, the only cars that ever resisted depreciation were a small group of high end, limited production cars. The Taycan isn’t that. I paid $143k for my ‘22 4S 14 months ago. It’s probably worth $100-$110k right now. That’s normal depreciation for a new car.

I’m well aware of depreciation and at present it’s very high on the Taycan in the UK. I was using my example to highlight this. I bought a USED 4S two months ago, I tried to trade up to a used Turbo with two separate dealers. First dealer offered me £20k less than what I paid, second dealer £30k less. I was just trying to get across that it’s a bitter pill to swallow. Plus there’s a massive difference in the two offers received.


Your example refers to a new car dropping $30-$40k over 14 months. I’m losing 20-30k in UK pounds over two months on a used car. It’s nowhere near being the same.

 

[whitex]

I suggest you re-read what I typed because what you just said bears no resemblance whatsoever to my points.

Ok, here is what you said:

I had two offers against my (highly spec’d) 4S. The first was 20k down on my buy price, the second was 30k down. I bought the 4S two months ago.
Shocking.

You are calling 20K below your buy price "shocking" and then you say:

I’ve owned high spec, top brand cars for years but never experienced depreciation like what I was quoted on the Taycan 4S that I’ve only owned for two months.

I assumed you paid over 100K for your highly speced 4S, so 20k is less than 20% loss. Hence my question, in your many years of experience, what high spec, top brand car did you see a lower 2 month loss on?

 

[Midlifecrisis]

VAT doesn’t make any difference to the amount of personal loss. Whether you include VAT or not, it’s still a ridiculous amount of money to lose in two months.

I didn’t over-spec it, it was a used car. Plus, I didn’t plan to “flip” the car, when I bought it, I just had my head turned after driving a turbo, but yes, given the market conditions and excessive dealer greed, it looks like two years with a toyed-up 4S which is no hardship.

The 4S is a fantastic car and I really enjoyed mine. However there is a lesson here if you own a 4S... Don’t dive a turbo as you will probably want one!

 

[Mac_Gaz]

Ok, here is what you said:

You are calling 20K below your buy price "shocking" and then you say:

I assumed you paid over 100K for your highly speced 4S, so 20k is less than 20% loss. Hence my question, in your many years of experience, what high spec, top brand car did you see a lower 2 month loss on?

I’ve owned and traded cars from BMW, Audi, Merc and Porsche through to Fords and more general marques. Never have I seen anywhere near a 20/30% fall on the two-month ownership of a car. Especially when looking to trade up with the same dealer.

Like someone else said in the thread, the prices have taken a tumble in the UK and in my case it’s bad timing. I really didn’t want the third degree from people just because I was quoting my example which is relevant to the subject of the thread.

 

[whitex]

The 4S is a fantastic car and I really enjoyed mine. However there is a lesson here if you own a 4S... Don’t dive a turbo as you will probably want one!

I waited 20 months for my Turbo. Could have had a 4S much earlier. For me it was not driving the Turbo, but rather switching out of a Model S Ludicrous and test driving a 4S, leaving me wanting more power so the switch to a Taycan doesn't feel like a downgrade in power. The Turbo did not disappoint by the way.

 

[Midlifecrisis]

The market changed completely between November and January. Liz Truss, cost of living etc. We suddenly got back to normal with a bit of catch up depreciation on second hand cars

 

[Midlifecrisis]

The 4S is a fantastic car and I really enjoyed mine. However there is a lesson here if you own a 4S... Don’t dive a turbo as you will probably want one!

And for this reason I do not plan to drive a Turbo S - although I have no idea what I could do with more power!

 

[whitex]

I’ve owned and traded cars from BMW, Audi, Merc and Porsche through to Fords and more general marques. Never have I seen anywhere near a 20/30% fall on the two-month ownership of a car. Especially when looking to trade up with the same dealer.

Like someone else said in the thread, the prices have taken a tumble in the UK and in my case it’s bad timing. I really didn’t want the third degree from people just because I was quoting my example which is relevant to the subject of the thread.

I've owned many cars in my life. Always assumed I'm taking 10-20% loss as soon as I sign on the dotted line (less on heavily negotiated low end cars, but we're talking a Porsche). The biggest % depreciation I took was on a 2001 911C4 which I sold 2 years later for less than half MSRP.

 

[f1eng]

And for this reason I do not plan to drive a Turbo S - although I have no idea what I could do with more power!

The number of times I have used full throttle on my 4S is not often, since I am almost never on quiet enough roads to exploit it, I used that fact to decide I didn't need more power. The price difference is massive too.

 

[mcr21]

The 4S is a fantastic car and I really enjoyed mine. However there is a lesson here if you own a 4S... Don’t dive a turbo as you will probably want one!

will take your advise and def not test-drive the T/TS then!

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